Correlation Between AALBERTS IND and STILLFRONT GRP

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both AALBERTS IND and STILLFRONT GRP at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining AALBERTS IND and STILLFRONT GRP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AALBERTS IND and STILLFRONT GRP AB, you can compare the effects of market volatilities on AALBERTS IND and STILLFRONT GRP and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in AALBERTS IND with a short position of STILLFRONT GRP. Check out your portfolio center. Please also check ongoing floating volatility patterns of AALBERTS IND and STILLFRONT GRP.

Diversification Opportunities for AALBERTS IND and STILLFRONT GRP

0.19
  Correlation Coefficient

Average diversification

The 3 months correlation between AALBERTS and STILLFRONT is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding AALBERTS IND and STILLFRONT GRP AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on STILLFRONT GRP AB and AALBERTS IND is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on AALBERTS IND are associated (or correlated) with STILLFRONT GRP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of STILLFRONT GRP AB has no effect on the direction of AALBERTS IND i.e., AALBERTS IND and STILLFRONT GRP go up and down completely randomly.

Pair Corralation between AALBERTS IND and STILLFRONT GRP

Assuming the 90 days trading horizon AALBERTS IND is expected to generate 0.49 times more return on investment than STILLFRONT GRP. However, AALBERTS IND is 2.03 times less risky than STILLFRONT GRP. It trades about -0.01 of its potential returns per unit of risk. STILLFRONT GRP AB is currently generating about -0.02 per unit of risk. If you would invest  3,692  in AALBERTS IND on October 7, 2024 and sell it today you would lose (286.00) from holding AALBERTS IND or give up 7.75% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

AALBERTS IND  vs.  STILLFRONT GRP AB

 Performance 
       Timeline  
AALBERTS IND 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days AALBERTS IND has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, AALBERTS IND is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.
STILLFRONT GRP AB 

Risk-Adjusted Performance

11 of 100

 
Weak
 
Strong
Good
Compared to the overall equity markets, risk-adjusted returns on investments in STILLFRONT GRP AB are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, STILLFRONT GRP reported solid returns over the last few months and may actually be approaching a breakup point.

AALBERTS IND and STILLFRONT GRP Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with AALBERTS IND and STILLFRONT GRP

The main advantage of trading using opposite AALBERTS IND and STILLFRONT GRP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AALBERTS IND position performs unexpectedly, STILLFRONT GRP can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in STILLFRONT GRP will offset losses from the drop in STILLFRONT GRP's long position.
The idea behind AALBERTS IND and STILLFRONT GRP AB pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
Check out your portfolio center.
Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.

Other Complementary Tools

Money Managers
Screen money managers from public funds and ETFs managed around the world
Idea Optimizer
Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio
Price Exposure Probability
Analyze equity upside and downside potential for a given time horizon across multiple markets
Sectors
List of equity sectors categorizing publicly traded companies based on their primary business activities
Equity Forecasting
Use basic forecasting models to generate price predictions and determine price momentum